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In India, very few other options give you the flexibility and safety of investment like a fixed deposit. Within them, comparing the features of a cumulative vs non-cumulative FD can help you make a choice that either increases your returns or your liquidity. 

If you are thinking of a long-term investment, consider a cumulative FD. If you prefer periodic returns, start a non-cumulative FD. To understand these two highly popular FD options, read on.

What is a Cumulative FD?

If you are planning for the long term or want to deposit a considerable amount for safekeeping while earning interest, then you should consider these FDs. With them, you can benefit from compounding interest over the tenure and get the interest amount along with your capital at maturity. 

 In this way, your money continues to grow without any need to monitor it. Now that you know the meaning of cumulative FD, here are its benefits:

• It is a great option for long-term goals
• It is a convenient way to build your wealth
• It offers higher returns

What is a Non-Cumulative FD?

If you are looking for periodic earnings, then a non-cumulative FD is your best choice. With it, your invested amount earns interest on a monthly, quarterly or yearly basis. You can also choose to receive your payout bi-annually. This means you have greater liquidity for recurring expenses as you can access your interest gains without waiting for the FD to mature. To make up for this benefit, the interest rate is lower. 

Here are its benefits:

• It offers you a steady income
• Ideal for managing post-retirement expenses 

Also Read : Callable Vs Non Callable FD

Cumulative and Non-cumulative FD Differences

Here’s a brief overview of what each of these options offers in terms of payout and other factors so you can make the right call. 

Differences	Cumulative FD	Non-cumulative FD
Interest Rate	Relatively higher than non-cumulative FDs	Relatively lower than cumulative FDs
Payout Timeline	Paid on maturity	Paid periodically
Best Suited For	Long-term financial goals	Periodic earning

Factors to Consider Before Booking a Deposit 

Cumulative and non-cumulative FDs have different features and benefits, and only you can pick which one is ideal for you. Here’s a list of the factors that can help you decide between the two:

• Understand Your Financial Objectives 

If you are looking for long-term savings, then a cumulative FD is a great tool; however, if you want regular income, you should consider non-cumulative FDs.

• Consider Your Desire For Liquidity

If you can manage your finances without needing to withdraw the FD investment for however long you wish to invest, go for the cumulative option as it offers higher returns. 

If you need to pay bills or recurring expenses with the interest earnings, choose a non-cumulative FD.

• Compare Interest Rates

While picking which FD would be better, consider the prevailing interest rates of the financial institution for both options. In this way, you make an informed decision by comparing the gains.  

• Consider the Investment Tenure

While investing you must think about the tenure you can invest your money for. Cumulative FDs can give you higher returns as the interest is compounded for the entire tenure. Non-cumulative options will offer the same return despite the tenure.

Cumulative and non-cumulative FDs are a great way to invest any extra funds or savings you have. This is because they come with lower risk and offer better returns compared to a savings account. 

FAQs on Cumulative and Non-cumulative FDs

How does interest payout differ in cumulative vs non-cumulative FDs?

In cumulative FDs, the interest you earn is added to your capital. This way, it continues to grow through compounding interest. In a non-cumulative fixed deposit, your interest will be credited to your account, and you can access it before maturity at intervals of your choice. 

Which option is better for monthly income: cumulative or non-cumulative FD?

For monthly income, the non-cumulative deposit is a better option. It allows you to access the interest payout at regular intervals, be it monthly, quarterly or annually. 

Can I switch from a non-cumulative FD to a cumulative FD during the tenure?

This depends on the financial institution where you have made the deposit. If it permits,  you can convert your non-cumulative fixed deposit to a cumulative option during the tenure. If not, then you can reinvest the amount in an FD of your choice after the completion of the tenure.

All bank’s FD interest rates are dynamic and evolve with time. Depending on your preferred bank’s policy and other factors, it changes for every deposit you make. These rates are mentioned on the official website of the bank, which allows you access to complete data to estimate your returns. 

This way, you can compare multiple issuers’ rates and select the most favourable type of FD. To begin, you should understand how financial institutions offering fixed deposits calculate your FD interest. Read on to know which bank is best for fixed deposits, factors that affect it, how to choose and more.

Factors Affecting FD Interest Rate

Before knowing the best bank for fixed deposit in India, you should know how financial companies decide your FD rates. Here are the parameters:

• Tenure

This is the most common and visible factor that can increase or decrease your interest rate on a term deposit. In general, a longer tenure gives you a higher interest rate while making a deposit for a shorter tenure earns you low interest. Some banks may offer special tenures for which you can earn a higher rate, so watch out for those.  

• Investment Amount

A larger deposit can earn you a higher interest. As such, deposits up to ₹3 crore will attract lower interest as opposed to deposits over ₹3 crore, even if you choose the same tenure. 

• Age 

If you are investing in a senior citizen account, you can get an additional rate of hike to 0.25% to 1% or more based on the bank. 

• Repo Rate

Banks do not have the liberty to choose any interest rate on their own. They must adhere to the RBI policy to calculate the interest rates based on the repo rate. If the repo rate is higher, FD rates will also be high and vice versa. 

• Inflation

To combat inflation, the RBI may increase the repo rate. This may lead to higher FD rates, so investing in this climate can be a good decision. 

• Fixed Deposit Type

When you choose a tax saver FD, your invested amount is locked in for 5 years. To compensate for this reduced liquidity of your funds, banks offer you are higher interest rate. In some cases, you can get the highest FD rates in banks by investing in tax-saving FD for 5 years instead of the maximum tenure of 10 years. Similarly, investing in a cumulative FD gives you higher rates than a non-cumulative FD. 

• Premature Withdrawal 

When you withdraw your funds after the completion of the tenure, most banks charge a penalty. This can reduce your interest rates by 0.5% to 1%, reducing your overall earnings.

Some of the Top Banks’ FD Interest Rates

Now that you know the factors that dictate how you can earn the maximum returns, you can make informed decisions. To simplify your search, here are some banks with the best fixed deposit rate for FDs of less than ₹3 crores:

Banks	Interest Rate for Regular Citizens		Interest Rate for Senior Citizens
	Minimum	Maximum	Minimum	Maximum
Axis Bank	3% p.a.	7.25% p.a.	3.50% p.a.	7.75% p.a.
Bank of Baroda	4.25% p.a.	7.15% p.a.	4.75% p.a.	7.65% p.a.
Canara Bank	4% p.a.	7.25% p.a.	4% p.a.	7.75% p.a.
HDFC Bank	3% p.a.	7.40% p.a.	3.50% p.a.	7.90% p.a.
ICICI Bank	3% p.a.	7.25% p.a.	3.50% p.a.	7.80% p.a.
IDFC Bank	3% p.a.	7.75% p.a.	3.50% p.a.	8.25% p.a.
IndusInd Bank	3.50% p.a.	7.75% p.a.	4% p.a.	8.25% p.a.
Kotak Mahindra Bank	2.75% p.a.	7.40% p.a.	3.25% p.a.	8.14% p.a.
Punjab National Bank	3.50% p.a.	7.25% p.a.	4.30% p.a.	8.05% p.a.
SBI Bank	3.50% p.a.	7% p.a.	4% p.a.	7.50% p.a.
Yes Bank	3.25% p.a.	7.75% p.a.	3.75% p.a.	8.25% p.a.

Disclaimer: These rates are the latest as of November 2024 and are subject to the bank’s policy. They can change at any time at the discretion of the bank, so check them before you invest. 
Knowing the banks with the best fixed deposit rate helps you make better choices and potentially earn better returns. In addition, try to avoid withdrawing your funds before the tenure is complete. If you need urgent funds, choosing an affordable loan without any end-use restrictions can be a good solution.

If you plan to withdraw your FD before it matures, whether partially or completely, this process involves paperwork and penalties. Before you go about the process of making a premature withdrawal of a fixed deposit, you must know what to expect. 

When you have an unexpected financial or medical emergency, you can liquidate your FD in just a few steps. Read on to know more about the process. 

Understanding Premature Withdrawal

After you have opted for a term deposit, commonly known as a fixed deposit, your money is invested for a fixed term. You get an interest based on how much you have invested and for how long. When you wish to proceed with a premature withdrawal of a fixed deposit, the timeline is reduced, which leads to an interest penalty. Some financial institutions may allow you to do this without any penalty, but this is rare. 

Premature FD Closure Charges

The fixed deposit penalty will vary based on the bank or NBFC where you made the deposit.  Before submitting the application for premature withdrawal of a fixed deposit, find out about the interest rate penalty. Here’s an overview of how much you may be paying:

• Most banks charge a penalty ranging between 0.5% and 1.00% of the interest rate
• The initially promised interest rate will also reduce based on the actual tenure 
• Some banks may forgo the penalty for prematurely withdrawing your FD

FD Premature Withdrawal Penalty

As FD promises to preserve your capital, your principal will be untouched. The penalty will be reflected in the FD interest earned over your investment period. So, assume you book an FD at ₹15 lakhs for 36 months at 7% p.a. 

After 12 months, you wish to withdraw the funds, but the issuer charges a 0.50% penalty. In that case, your final interest will be calculated for one year at 6.50%. As such, here are your returns calculated before and after.  

Parameters	Before Premature Withdrawal	After Premature Withdrawal
Tenure	36 months	12 months
Interest	7%	6.5%
Calculated Interest	₹34,716	₹9,990
Total Earnings	₹1,84,716	₹1,59,990

Avoiding Penalties on Withdrawing Prematurely

There are three options to avoid penalties for your premature withdrawal of a fixed deposit. 

• Option 1: Invest for a shorter period, like 7 days or 3 months
• Option 2: Go for an issuer who doesn’t have penalties on FD premature withdrawal
• Option 3: Choose flexi fixed deposit options

Advantages and Disadvantages of FD Premature Withdrawal

To make the right decision about your investment, check the table below:

Pros of FD Premature Withdrawal	Cons of FD Premature Withdrawal
1. You can get immediate access to funds  2. You can experience financial flexibility 3.You can pay off any debt with the FD proceeds	1. Your promised interest will be reduced  2. Your long-term goals may be impacted 3. You may have to bear interest penalties

If you want to withdraw your FD before the lock-in period, keep the penalty in mind. The best way to maintain your investment is to create an emergency fund that can help you address urgent needs with ease. 

FAQs on FD Premature Withdrawal

Are there tax implications for early withdrawal of fixed deposits?

The application for premature withdrawal of fixed deposit does not affect the tax you need to pay. The tax is based on your interest earnings and is related to your tax slab. TDS is also applicable based on whether your interest earnings cross the threshold of ₹40,000 or ₹50,000 based on whether you are a regular or senior investor.

Can I avoid penalties for premature withdrawal of fixed deposits?

The only way to avoid penalties on FD premature withdrawals is when you choose a financial institution that doesn’t charge a fee for this facility. Otherwise, you can try to ladder FDs or choose a Flexi FD for more liquidity. 

Can I reinvest my prematurely withdrawn fixed deposit amount in a new FD?

When you choose to proceed with a premature withdrawal of the fixed deposit amount, you can use the funds as you wish. You can also invest in a new FD with higher interest rates.

You book a fixed deposit, it is for a specific term. Generally, you close your FD after it matures at the end of this term. In case, you want to make a premature withdrawal, then you will have to give an FD closing application. Understanding the process can help you access funds when needed, so read on to learn the complete steps involved. 

What is Fixed Deposit Maturity?

When you apply for a fixed deposit, you invest your money for a certain period. This can be anywhere between 7 days and 10 years. Based on your financial goal, you can choose a comfortable tenure. After the FD maturity period, you receive the invested principal amount back. If you have booked a cumulative FD, you also receive the interest earned. If not, you will get the payout at your chosen intervals.  

How to Close an FD on Maturity

After your fixed deposit has matured, you can withdraw the funds and transfer the money to your savings account or renew your FD. There is also a third scenario when your fixed deposit has matured, and you have left it unattended. In that case, there are two possibilities:

• The bank may transfer the funds to your savings account
• The bank may renew your FD for the same tenure

If you want to withdraw your FD on maturity, follow these steps:

1. Step 1: Visit the financial institution 
2. Step 2: Submit your FD receipt
3. Step 3: Ask to close the FD
4. Step 4: Complete the signing process
5. Step 5: Submit your bank details (as per your preference)
6. Step 6: Receive your money in your account

To withdraw the FD amount online, you can log into your net banking account and follow the process as mentioned on the dashboard. Most financial companies will automatically transfer the funds if you have not opted for auto-renewal.

What is Premature Fixed Deposit Withdrawal?

In case you want to make a withdrawal before the tenure ends, you can do so. Keep in mind that doing this can reduce your gains as you may not get the interest rate decided at the time of application. Premature withdrawal results in an interest penalty but helps you when you need to access funds for urgent needs. 

Say you have invested ₹5 lakhs for 5 years, and there is a medical emergency in your family. In that case, you may want the ₹5 lakh corpus before the FD maturity period so you can deal with this crisis. 

How to Close Your FD Before Maturity

In case of early withdrawal, you may have to pay FD closing charges based on your issuer’s policy and the investment terms. Here’s what the online and offline process involves:

The offline FD closing process goes like this:

1. Visit the financial company
2. Ask for an FD cancellation form
3. Fill out the form
4. Submit the required documents (if asked for)
5. Submit your form along with these documents
6. Receive your money in your account

In case you are following an online process, you can follow these basic guidelines:

1. Visit the website of the issuer
2. Log in using your login credentials
3. Select the prompt ‘Premature Close of FD’
4. Enter the details and submit your cancellation

You will receive the money after the approval of your FD closing application. The online process is usually much faster than the offline process. So, if you want your funds instantly, try to go for the online process. Make sure you have your fixed deposit receipt with you to access the number while closing your FD.

FAQs on Fixed Deposit Closure

Can I close my fixed deposit automatically upon maturity?

Yes, you can close your FD on maturity by ensuring you contact the issuer and transfer the amount to your savings account. You can close your FD before it matures as well.

Is it possible to close a fixed deposit prematurely instead of waiting for maturity?

Yes, it is possible to close your FD before it matures. Fill in the FD closing application, and it will be approved. In this case, the interest on your fixed deposit will not be the same as when you booked it since premature withdrawal comes with a penalty. Some banks may also require additional FD closing charges.

Can I close my fixed deposit online or do I need to visit the bank?

You can close your fixed deposit online, whether you are closing it before maturity or upon maturity. The online process may be much faster, but you can also close your FD offline by visiting a branch of the bank or NBFC yourself.

A fixed deposit account is the most common investment idea you will come across. It is a reliable tool that gives steady growth; all you need to know is how to open a fixed deposit account. With the growth of digital marketplaces, you have the option to choose between online and offline processes.  

For most banks, the process of opening a fixed deposit account remains the same. This ensures that you can book an FD in just a few minutes to start earning interest without any delays. Knowing this process can help you plan out the easiest ways you can grow your money at minimal risk. Read on to learn all about it.

What is the FD account?

The definition of a fixed deposit states that it is a term deposit account with a fixed tenure. It is a type of investment you can avail of at any point. It doesn’t require you to meet any hard and fast eligibility criteria and offers you slow but stable growth.  

On maturity, it will give you the invested amount with interest or you can access your payout at intervals and get the principal at the end of the tenure. There are certain features of FD which make this investment option reliable:

• Assured returns
• Flexible tenure
• Security and stability
• Investment ease
• Tax benefits in certain cases
• Loan against FDs
• Capital preservation

How to Open a Fixed Deposit Account

Most banks give you the option to choose your preferred method of opening a fixed deposit account. After comparing interest rates, if you know which bank you want to invest in, this simplifies the task for you. Here are the steps you can follow.

Online Process

If you want to open a fixed deposit account online, you can follow a few simple steps and book a deposit in minutes. The following steps will help you complete the process in the comfort of your home without any hassles.

For existing customers:

1. Log in to your net banking account
2. Go to the ‘Transaction’ section
3. Choose the ‘Fixed Deposit’ option 
4. Select your account branch
5. Enter your amount, tenure and appoint a nominee
6. Follow the instructions to complete the process
7. Download the fixed deposit receipt

You can also use a mobile banking app to open your fixed deposit account. Follow these steps:

1. Launch the app of your bank
2. Login using your credentials
3. Find ‘Open a Fixed Deposit Account’
4. Enter the amount you want to invest
5. Select a comfortable tenure
6. Choose the savings account from the amount that will be debited
7. Click on apply
8. Download the fixed deposit receipt

If you are not the bank’s existing customer, then you must follow these steps to open a fixed deposit account: 

1. Go to the bank’s official website 
2. Select the FD option 
3. Fill out the application form
4. Select your preferred deposit terms 
5. Make a deposit using online methods
6. Review and confirm the terms 
7. Print and save the deposit details 

Offline Process

In case you are comfortable booking your FD in person, banks have that option available too. Follow these steps to open a fixed deposit account offline at a financial institution’s branch:

1. Visit a branch
2. Ask for the FD application form
3. Fill out the form
4. Confirm the list of the self-attested documents required
5. Recheck your form and submit it with documents
6. Give the FD amount in cash or cheque 
7. Receive your FD receipt on completion 

Eligibility Criteria and Documents Required for Fixed Deposits

To open a fixed deposit account in India, the eligibility criteria are very straightforward. Here are the things you need to keep in mind while applying:

• Mention your nationality 
• Mention your age, as senior citizens get higher interest rates
• Submit documents, such as your Aadhaar, PAN, Voter’s ID or Driving license

Usually, FDs offer the best returns when you book them for special tenures offered by financial institutions. Withdrawing prematurely may result in loss of interest. So, if you require any additional funds during this period, consider applying for a loan. With the Fibe Instant Personal Loan, you get instant disbursal of up to ₹5 lakhs at competitive interest rates.

After approval, you can repay your loan over up to 36 months. However, if you want to become debt-free early and close your loan before the tenure ends, you can do that at no additional charge. All you need to do is download our Personal Loan App or log in on our website to get started. 

FAQs on Opening a Fixed Deposit Account 

What is the minimum and maximum amount to open a fixed deposit?

Most financial organisations mention the minimum FD amount ranging between ₹1,000 to ₹25,000. For most banks, there’s no maximum FD limit. However, the interest rate for selected tenure changes with the principal.  

Can I open a fixed deposit jointly with someone else?

Yes, you can open a joint FD account with someone else. Usually, you can add up to three members for one fixed deposit account. 

Is it necessary to have a savings account with the bank to open a fixed deposit?

The fixed deposit account opening process does not require you to have a savings account with the bank unless you are going for a sweep-in or Flexi FD. You can open an FD without being an 

existing customer.

Fixed deposits are a popular scheme that helps you grow your savings. In addition to that, they also help you procure a loan during an emergency by acting as collateral. When you take a loan or a credit card against your FD, you should know about the lien on fixed deposit.  

What is the Lien on FD?  

Fixed Deposits (FDs) are also a great way to secure funds in case of emergencies. When you pledge an FD as collateral, it becomes a liened FD meaning you cannot withdraw it before repaying the loan. If you default on payments for a prolonged period, the lender has the legal right to recover dues from the FD amount. 

In case you default on your repayment or credit card bills for a prolonged period (which varies depending on the lender), then your FD will be seized. This is the way that a financial company gets access to dues.  

Remember that a lien marking on fixed deposit does not mean the issuer will break your FD and collect the money. It simply refers to the fact that your FD is pledged against a credit facility. When you pay your outstanding dues, you will get access and ownership of your FD. However, if you are unable to do so, the financial institution has the legal right to collect the dues by accessing the lien amount on the fixed deposit.  

Benefits of Lien on FDs 

Easy Access to Loans or Credit 

A lien on fixed deposit helps you leverage an FD to secure various credit facilities such as personal loans, credit cards or overdrafts. It is a convenient process that allows you to access funds by increasing your eligibility.  

Lower Interest Rates 

As you are pledging your FD as collateral, you may get a lower interest rate on your loan based on the policies of the financial institution.  

Maintaining FD Benefits 

When you can access funds via a loan or a credit card, your FD will continue to generate interest and thrive at its own pace.  

Risks of Lien on FDs 

Restrictions on Access to Funds 

After a lien marking on a fixed deposit, you cannot withdraw the amount until you repay the loan amount. This makes it harder for you to access funds in an emergency.  

Potential Loss of Your FD 

If you fail to repay your loan, then the lender will recover your loan outstanding from your FD amount.  

Impact on Credit Score 

Any sort of repayment failure will reduce your credit score.  

How to Remove Lien on Fixed Deposits?  

The only way to free the lien amount on a fixed deposit is to repay your loan. Thus, you must stay on track with your repayment or pay your credit card bills to get full access to your FD.  

Tips to Avoid Lien 

Here are a few tips to avoid a lien on your fixed deposit: 

• Create an emergency fund and do not use the FD as collateral 

• Increase your credit score to qualify for credit cards or loans without needing an FD as security 

Irrespective of how prepared you are, unexpected situations can put you in peril or financial crunches. This may lead to a situation when your lender can claim the lien. However, using your FD as collateral can help you access credit that you may not be able to get in any other way.  

FAQs on Lien on FD 

How does a lien on a fixed deposit affect loan interest rates?  

When you apply for a loan with your FD as collateral, you may get a lower interest rate on your loan as the lender’s risk is reduced.  

Can I still renew my fixed deposit if there is a lien on it?  

You cannot renew or withdraw your FD while lien is applied on it.  

Can a bank impose a lien on a fixed deposit without my consent?  

A bank proceeds with lien marking on fixed deposits when you offer your FD investment as security.  

Have you ever heard of the term ‘flexi fixed deposit’? Fixed deposits have been popular amongst Indian investors because of their reliability and capital preservation. They give you the option to create a customised savings plan that helps you advance, slow and steady, towards your financial goals. 

A flexi fixed deposit combines the benefits of a fixed deposit with a savings account. To learn more about it, continue reading.

What is Flexi Deposit?

Marrying the liquidity of a traditional savings account with the higher earnings of a fixed deposit, a flexi fixed deposit is an interesting option to consider. This hybrid product provides security and easy access to your funds. 

With this type of FD, you can withdraw a part of your deposit, which is generally not allowed in FD investments where your funds are locked in for a predefined term. Here, your FD account is linked with your savings or current account. You can withdraw from it based on the terms of the financial institution. This facility comes at a cost as the interest rates you enjoy are lower than that of a regular FD. However, it does offer enhanced convenience. 

It also allows you to choose a limit after which the funds in your account are transferred to the FD. When the account balance is lower than the limit you have set, the funds are transferred from the FD into the account. The terms of a flexi deposit may also differ as per the policies of the financial institution. 

Features of Flexi Fixed Deposit

Here’s why you can choose this savings scheme:

• Double Benefits

The attractive feature of a flexi deposit is you get the advantage of accessing funds via a bank account while earning interest that is higher than a traditional savings account. If you seek timely liquidity, this may be ideal for you. 

• Partially Withdrawable Funds

While you may not be able to access all of the funds of your FD, you can partially withdraw based on the allowed frequency and limit of the issuer. 

• Quarterly or Yearly Interest

Based on the financial institution’s policy, you can earn interest that is compounded at regular intervals. This is a great opportunity as you can save more and earn regular income. 

• Freedom of Choosing Principal and Tenure

You can decide on how much you want to invest in your FD and for how long. This helps you meet your financial goals on your terms. 

• Perks Like Loan Facility and Auto-Renewal

Just like a regular fixed deposit, a flexi deposit also allows you to pledge your FD to get a loan. You can also remain invested for the long-term by choosing the auto-renew facility. 

Flexi Fixed Deposit Interest Rates

You can get assured returns with such an FD scheme, and most popular banks offer this option to grow your savings. Check the following table to compare the interest rates:

Name of Bank’s Scheme	Applied Interest Rate	Flexible Investment Tenure	Minimum Investment Amount
Axis Bank Auto Fixed Deposit	Up to 7.75% p.a.	6 months to 5 years	₹5,000
BOB Suvidha Flexible Fixed Deposit Scheme	Up to 7.65% p.a.	12 months to 5 years	₹5,000
e-SBI Flexi Deposit	Up to 7.50% p.a.	5 years to 7 years	₹5,000
DBS Bank Flexi Deposit	Up to 7.50% p.a.	374 days	₹10,000
RBL Bank Flexi Sure Fixed Deposit	Up to 8.85% p.a.	7 days to 10 years	₹5,000

Advantages and Disadvantages of Flexi Fixed Deposit

Keep the factors listed below in mind when deciding if this is the right investment for you:

Advantages of Flexi Fixed Deposit	Disadvantages of Flexi Fixed Deposit
Invest as much as you want  Access higher liquidity  Enjoy auto-renewal and loan facility	Lower interest rates than a regular FD Penalties apply for premature withdrawals May not be suited for long-term goals

Now that you know the basic facts, you can make the right decision based on your goals. 

FAQs on Flexi Fixed Deposit

Can I withdraw money partially from a Flexi Fixed Deposit?

Yes, you can partially withdraw money from your fixed deposit with a flexi fixed deposit scheme.

What are the tax implications of investing in a Flexi Fixed Deposit?

Your yearly interest will be taxable as per your slab. TDS will also be deducted if your interest gains are about ₹40,000 or ₹50,000, based on whether you are a regular or senior citizen. 

Can I link my savings account with a Flexi Fixed Deposit?

Yes, you can link your savings account or current account to your fixed deposit. This is the meaning of flexi fixed deposit.